After Draghi failed to take EUR/USD out of its comfort zone, the pair is finally falling out of range. In the late hours of Friday, euro/dollar is falling to low support. 1.0960 is the second post-Brexit low. The pair hit 1.0956 before bouncing a bit, but is not going too far. The next line of support is 1.0910, which was the post-Brexit low.
The move was a slow one and comes along some other risk averse movements in markets. The pound fell on worrying PMIs, oil is falling and the yen looks slightly stronger.
WTI Crude Oil drops under $43, reflecting worries about global demand. Similar to the euro, this isn’t a sudden crash but rather a grind down.
The fall began before reports came out of the German city of Munich about shootings. A major police operation is underway and people are called to stay away from the Olympia-Einkaufszentrum shopping center that is reportedly attacked.
Update: the event seems to be over but with multiple fatalities. The background is unclear but the automatic reaction is that this a terror attack, following the kniving seen in a German train and the devastating attack in Nice, France on July 14th.
Opinion: ECB to ease in September – will EUR/USD fall?
Here is the EUR/USD chart:
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